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Tue, 26 Sep 2017 22:32:16 +0000en-UShourly1https://wordpress.org/?v=4.4.11http://feeds.feedburner.com/Rismedia?format=skinBrace for Impact: A Look at Real Estate After Hurricanes Harvey and Irmahttp://feedproxy.google.com/~r/Rismedia/~3/Z19aB6MXR_E/
http://rismedia.com/2017/09/26/brace-impact-look-real-estate-hurricanes-harvey-irma/#respondTue, 26 Sep 2017 20:36:35 +0000http://rismedia.com/?p=134901While the latest hurricane in a string of immensely powerful storms—Maria—has left Puerto Rico in a state of chaos and desolation, hurricanes Harvey and Irma continue to haunt Florida and Texas where residents are struggling to adapt after weeks of cleanup to remove debris from the streets. Roads are heavily damaged from flooding and homes are […]

]]>While the latest hurricane in a string of immensely powerful storms—Maria—has left Puerto Rico in a state of chaos and desolation, hurricanes Harvey and Irma continue to haunt Florida and Texas where residents are struggling to adapt after weeks of cleanup to remove debris from the streets. Roads are heavily damaged from flooding and homes are destroyed. What does this say for the real estate market in these areas?

“We need to keep our friends and neighbors in Houston and Florida in our prayers and thoughts,” said Ron Peltier, chairman and CEO of HomeServices of America, at RISMedia’s 2017 Real Estate CEO Exchange earlier this month. “Just in our business alone, a lot of transactions will fall out; there will be a lot of lost revenue for agents and brokers. I don’t think it will right itself any time soon.”

Houston was hit particularly hard. Mark Woodroof, partner at Better Homes and Gardens Real Estate Gary Greene Realtors®, described the cleanup logistics in Texas as overwhelming. Houses are flooded, and furniture and drywall insulation are out on the curb waiting to be picked up.

While brokerages offered support for agents affected by the storms, it will be a long road to recovery. Sixty-two agents from Woodroof’s office alone were impacted.

“We had eight of our own team members severely affected, yet our whole firm, community, business leaders, friends and family came together to assist in rebuilding,” says Nimesh Patel, owner and managing partner of RE/MAX Fine Properties in Sugar Land, Texas. “As for future business, we are very confident in our agents and our community; we will be on our feet and on top very soon.”

Immediately following the storm, the majority of Florida dealt with downed trees and roof leaks. The Florida Keys took the brunt of the damage, while inland regions are already recuperating. Rei Mesa, president and CEO of Berkshire Hathaway HomeServices Florida Realty, has 40 offices throughout Florida, all of which are up and running at normal capacity. Other than scheduling delays due to evacuations and dangerous weather conditions, transactions are mainly on track to close, if they haven’t already.

“Florida is resilient,” says Mesa. “There were delays due to repairs, re-appraisals and re-inspections, but we’ve become very good at forecasting the impact [of hurricanes].”

Texas business continued on, as well. Woodroof’s offices closed on over 500 homes in September despite flooding caused by Harvey.

Other Florida brokerages relied on the Force Majeure and Risk of Loss sections of their standard contract to protect both sellers and buyers during their transactions.

“Our mortgage and title teams were essential in communicating about the federally mandated re-inspection guidelines and working with vendors to schedule them as soon as possible,” says Drayton Saunders, president of Sarasota, Fla.-based Michael Saunders & Company.

Contract protection and homeowner’s insurance may not be enough, however, for sellers that did not have any or a sufficient amount of flood insurance. Many are looking to FEMA for financial aid. Over 200,000 applications in Texas and Florida have already been approved for individual assistance.

While the impact of these storms may discourage some individuals from moving into hurricane-prone areas, Saunders predicts a bigger focus on new construction or homes equipped to handle hurricane-force winds.

“We expect there will be more emphasis put on homes (new and old) that have upgrades such as impact windows and other hurricane-related construction features. Sellers will also have to understand that buyers will be factoring these into their perception of value in addition to location and overall property condition,” says Saunders.

Mesa is also optimistic that Harvey and Irma did not drive buyers away.

“It’s a destination state with no state income tax, great diversity and high employment. Net migration to Florida will continue to be positive,” says Mesa.

However, if new construction or weather-proofing upgrades are the key, buyers may not have these options for a while. Harvey and Irma slowed down the new construction market and building plans by overextending an already dwindling quantity of construction workers.

“As recovery efforts move forward, the pre-hurricane shortage of construction workers will likely hamper the process of rebuilding efforts, and further limit the pace of new-home construction, as the limited labor supply shifts away from new-home construction to rebuilding efforts,” says First American Chief Economist Mark Fleming.

National Association of Home Builders (NAHB) Chief Economist Robert Dietz doesn’t believe this shortage in labor supply will correct itself anytime soon.

It may be too early to tell the long-term effects, but Fleming says the impact on the housing market will be considerable.

“The Houston metropolitan area and the impacted Florida counties alone accounted for 8.0 percent of all U.S. existing-home sales in 2016,” says Fleming. “We expect existing-home sales to decrease in the short-run, as loan closings are rescheduled and some borrowers with pending contracts withdraw their bids on damaged homes.”

The Federal Reserve says past experience has shown these storms will not affect the national economy over the medium term. Lawrence Yun, chief economist at the National Association of REALTORS® (NAR), also believes there will be more of a short-term impact, with lost business returning next year.

“Sales will be impacted the rest of the year in Houston, as well as in the most severely affected areas in Florida from Hurricane Irma; however, nearly all of the lost activity will likely show up in 2018,” says Yun.

According to the Houston Association of REALTORS® (HAR), the monthly housing market indicators produced varied figures because of Harvey. Single-family homes fell 25.4 percent—the first decline this year. Housing inventory, however, grew from a 4.0-months supply to 4.4 months, which may lower if residents in need of housing come out in full force to buy repaired or undamaged homes.

“Hurricane Harvey dealt a severe blow to the Houston area and Texas Gulf Coast, and it will probably be several weeks until we can gauge the storm’s full impact on our housing market,” says HAR Chair Cindy Hamann. “Home sales were humming throughout the first three weeks of August, but the moment Harvey struck the region, everything came to a screeching halt.”

“Our part of the West coast of Florida has also seen very few hurricanes, but having tracked the market very closely after the last major storm in 2004, we did not see long-term changes in buyers’ desire for the Florida lifestyle,” says Saunders.

While hurricane season may be winding down, natural disasters are cropping up all over the world. Their impact on real estate markets may be uncertain, but Leading Real Estate Companies of the World® (LeadingRE) Chief Economist Marci Rossell remains optimistic about the economic effects of these events.

“The economy’s true strength comes not only from its physical capital, but from its human capital, and natural disasters tend not to have an effect on that,” says Rossell.

The proof is in our response to these events.

“Out of what was a devastating situation for hundreds of thousands of people, what stood out was the number of Houstonians that were out rescuing people in their boats and helping people get out of their homes,” says Woodroof.

]]>http://rismedia.com/2017/09/26/brace-impact-look-real-estate-hurricanes-harvey-irma/feed/0http://rismedia.com/2017/09/26/brace-impact-look-real-estate-hurricanes-harvey-irma/Share the Message of REALTOR® Safetyhttp://feedproxy.google.com/~r/Rismedia/~3/xrUTcU15cb8/
http://rismedia.com/2017/09/26/share-message-realtor-safety/#respondTue, 26 Sep 2017 20:32:14 +0000http://rismedia.com/?p=134896NAR PULSE—Share the message of safety with your members this month. The Little Red Book: Safety Rules to Live By for REALTORS® is the perfect tool for your new or seasoned agents to use as they create and update safety protocols for their businesses. Click here to receive 15 percent off the print version until […]

]]>NAR PULSE—Share the message of safety with your members this month. The Little Red Book: Safety Rules to Live By for REALTORS® is the perfect tool for your new or seasoned agents to use as they create and update safety protocols for their businesses. Click here to receive 15 percent off the print version until Sept. 30—no code needed!

REALTORS® Relief Foundation – Benefitting Those in Need
Help support and rebuild communities impacted by Hurricane Harvey, Irma and other storms by donating to the REALTORS® Relief Foundation today! Every dollar you donate to the REALTORS® Relief Foundation goes directly to victims of disaster. Thank you to all those who have donated—your support matters more than ever in this extraordinary year of need. Donate here.

Help Clients Find You
Grow your business by making it easier for clients to find you online. Leverage the trust and exclusivity of the REALTOR® brand with the .realtor™ tools, including a .realtor™ domain and email address. This, along with actively using social media and updating the content on your website, can result in increased SEO for your brand, keeping you top-of-mind with current and potential clients. Learn more.

]]>http://rismedia.com/2017/09/26/share-message-realtor-safety/feed/0http://rismedia.com/2017/09/26/share-message-realtor-safety/Tackling Disruption From the Inside Outhttp://feedproxy.google.com/~r/Rismedia/~3/r7OlFj1HRik/
http://rismedia.com/2017/09/26/tackling-disruption-inside-out/#respondTue, 26 Sep 2017 20:28:59 +0000http://rismedia.com/?p=134892Editor’s Note: This was originally published on RISMedia’s blog, Housecall. See what else is cookin’ now at blog.rismedia.com: Are You Prepared to Handle the Top 3 Risks to Your Brokerage? (Do You Even Know What They Are?) Tips and Tricks for REALTOR® Safety Month How Do Reverse Mortgages Work? As the challenges facing the real […]

As the challenges facing the real estate industry continue to increase in volume as we move toward the future, being backed by a strong National Association of REALTORS® (NAR) is paramount to setting both the industry—and its practitioners—on a clear path to success.

A widely held misconception that according to Goldberg is often perceived as reality, Goldberg took to the stage to portray a different NAR—one with a focus on becoming a more proactive organization that takes the time to listen to its members and engage. “I’m tired of listening to why we’re going to get defeated,” said Goldberg of the rapidly changing industry. “We can’t sit around and wait to see what will happen. We have to change now. We need to make it happen.”

Tackling challenges head-on tops the list for Goldberg and his team as they help make change happen by taking the time to talk to members, attend events and listen to what’s out there.

“We’re all fearful of disruptors,” said Goldberg, “but we have to be the ones to help disrupt ourselves. We have to be fearless when looking at what’s happening, and embrace the change we see.”

While NAR’s strategy in the past consisted of keeping major players out of their sandbox—forcing them to create their own—the organization’s focus path forward will revolve around proactively going out and mentoring/advising those who have their minds set on coming into the industry. “We can no longer close our eyes, not look at them and believe they won’t think of us,” noted Goldberg, who is fully committed to exploring different ways of bringing everyone under the tent that is organized real estate.

“NAR doesn’t sit at the top of the pyramid,” said Goldberg. “But how do we flip the pyramid the other way around so that we’re all in this together?”

Working together for the betterment of the industry, NAR will also continue to expand its influence on Capitol Hill, lobbying on behalf of each and every one of its members.

“Our team wants to be responsive and listen to key issues, making sure we help clear the path for all of you to be successful and more profitable,” concluded Goldberg.

Stay tuned to RISMedia for continuing coverage of this year’s CEO Exchange sessions:

]]>http://rismedia.com/2017/09/26/tackling-disruption-inside-out/feed/0http://rismedia.com/2017/09/26/tackling-disruption-inside-out/Your Fall Produce Guidehttp://feedproxy.google.com/~r/Rismedia/~3/eVS3ylx5hvw/
http://rismedia.com/2017/09/26/your-fall-produce-guide/#respondTue, 26 Sep 2017 20:20:27 +0000http://rismedia.com/?p=134880Do you like to eat locally? While the summer has an abundance of fresh produce for you to grab at your local farmer’s market, as fall hits, many wonder what local produce is still available. Below are the top five things to eat this autumn, available in most regions in the country. Apples! All hail fall, […]

]]>Do you like to eat locally? While the summer has an abundance of fresh produce for you to grab at your local farmer’s market, as fall hits, many wonder what local produce is still available. Below are the top five things to eat this autumn, available in most regions in the country.

Apples! All hail fall, the season of apples! From apple pie to applesauce, apple slaw and more, there are hundreds of ways to enjoy this crispy sweet (or tart!) treat. Look for local apples in your grocery store or drive up to a nearby farm to pick yourself.

Broccoli. Although it does grow in the warmer months, broccoli lingers into the fall. Roast up some spears with garlic and olive oil, or pull out your wok for a quick stir-fry.

Blackberries. Most of us think of summer as the season for berries, but blackberries are available in some regions well into the early fall. Great for pies, smoothies, muffins and fruit salads, these juicy berries are packed with antioxidants—great for fighting colds as the “sick” season approaches.

Cabbage. Stuffed cabbage, baked cabbage, stewed cabbage, coleslaw! This cruciferous veggie is very versatile, and extremely inexpensive. Grab a head or four and get to munching.

Cauliflower. Many mistake cauliflower as being void of nutrients due to its pale coloring, but this couldn’t be further from the truth. Packed with vitamins, this veggie is great raw, steamed or baked. Some are even getting creative by making cauliflower “rice” and pizza crusts. Hit up Google for some innovative cauliflower recipes.

]]>http://rismedia.com/2017/09/26/your-fall-produce-guide/feed/0http://rismedia.com/2017/09/26/your-fall-produce-guide/NAR: Homebuyers, Sellers Stuck in Neutralhttp://feedproxy.google.com/~r/Rismedia/~3/404LgnlBe_E/
http://rismedia.com/2017/09/25/nar-homebuyers-sellers-stuck-neutral/#respondMon, 25 Sep 2017 20:19:28 +0000http://rismedia.com/?p=134839Homebuyers and sellers are confident in the housing market, but there are few sales to show for it, according to recently released findings from a survey by the National Association of REALTORS® (NAR). NAR’s quarterly Housing Opportunities and Market Experience (HOME) report reveals homebuyers and sellers are stuck in neutral, despite a record 80 percent […]

]]>Homebuyers and sellers are confident in the housing market, but there are few sales to show for it, according to recently released findings from a survey by the National Association of REALTORS® (NAR).

NAR’s quarterly Housing Opportunities and Market Experience (HOME) report reveals homebuyers and sellers are stuck in neutral, despite a record 80 percent of homeowners surveyed for the report believing now is a good time to sell and 62 percent of renters believing now is a good time to buy. Low inventory is behind the stall, says NAR Chief Economist Lawrence Yun.

“The housing market has been in a funk since early spring because of the ongoing scarcity of new and existing homes for sale,” Yun says. “The pace of new-home construction has not meaningfully broken out this year, and not enough homeowners at this point have followed through with their belief that now is a good time to sell. As a result, home shoppers have seen limited options, stiff competition and weakening affordability conditions. Buyer demand is robust this fall, but the disappointing reality is that sales will continue to undershoot their full potential until supply levels significantly improve.”

Buying a home is already a pipe dream for many renters—and pushed even further out of reach by rising rents, the report shows. Fifty-one percent of renters expect their rent to increase in the next year, but 42 percent would renew their lease, rather than buy a home, if their rent did go up. (Only 15 percent would buy a home.)

“Even though the typical down payment of a first-time buyer has been 6 percent for three straight years, two-thirds of respondents indicated that saving for one is difficult right now,” says Yun. “Rents and home prices have outpaced incomes in the past few years, and this is undoubtedly impacting their ability to put aside savings for a home purchase, even if they increasingly believe it’s a good time to buy. Heading into next year, higher home prices and limited inventory in the affordable price range will likely continue to hold back a share of renters who would prefer to be homeowners.”

More of those surveyed (57 percent) believe the economy is improving, however—optimism that could potentially translate into more earnings, and, by extension, more housing opportunities. The survey’s Personal Financial Outlook Index, which gauges respondents’ sentiment on their financial situation over the next six months, leapt up to 62.0 in September.

“Jobs are plentiful, wage growth is finally showing signs of life, home values are up considerably in the past five years and the stock market is at record highs,” Yun says. “The economy is not perfect, and growth overall is still sluggish, but the financial health of the typical household looks as healthy as it has since the recession.”

]]>http://rismedia.com/2017/09/25/nar-homebuyers-sellers-stuck-neutral/feed/0http://rismedia.com/2017/09/25/nar-homebuyers-sellers-stuck-neutral/Avoid ‘Chickeducks’: Team Leaders Talk Lessons Learnedhttp://feedproxy.google.com/~r/Rismedia/~3/wTw2NGyudzU/
http://rismedia.com/2017/09/25/avoid-chickeducks-team-leaders-talk-lessons-learned/#respondMon, 25 Sep 2017 20:11:20 +0000http://rismedia.com/?p=134827Collaboration as a concept is as old as time—but in the real estate industry, it represents a newer challenge: teams. “Brokers, in my opinion, have three choices: embrace the concept; look at it as a necessary evil; or have a ‘no flipping way’ attitude,” said Cleve Gaddis, leader of Gaddis Partners, RE/MAX Center, and moderator […]

]]>Collaboration as a concept is as old as time—but in the real estate industry, it represents a newer challenge: teams.

“Brokers, in my opinion, have three choices: embrace the concept; look at it as a necessary evil; or have a ‘no flipping way’ attitude,” said Cleve Gaddis, leader of Gaddis Partners, RE/MAX Center, and moderator of “Agent Teams: How to Manage, Maximize and Mitigate Risk,” a panel session at RISMedia’s recent 2017 Real Estate CEO Exchange.

“Teams are just a fact,” Gaddis told attendees of the exclusive event, which took place at the Harvard Club of New York City. “You either love ’em or hate ’em.”

As a panel, Gaddis and several pro-team leaders offered up lessons learned, perspective and tried-and-true tips.

The appeal, the panel agreed, is the distinct roles within the team—the whole, really, is greater than the sum of its parts.

“We recognized that there really is a division of a labor in the real estate transaction,” said Peter Hunt, CEO, chairman and president of Hunt Real Estate Corp. and Hunt Real Estate ERA—whose company, incidentally, is trademarked “the most team-friendly real estate company in the U.S.”

“All the while we’ve been trying to build these perfect little real estate beings in our training process, when, in reality, people are good at things and not good at others,” Hunt said. “[Teams have] helped bring people closer together, recognize what they’re good and not good at, and contribute to what we’re all about, which is the productivity of our agents.”

“Stop trying to be good in areas where you’re weak,” said Rick Cunningham, investor and owner with Keller Williams Franchises. “Excel in areas where you’re strong, and then we’ll find the right people with the characteristics to support you.”

Embracing teams came by way of trial-and-error for Lynn Reecer, CEO and managing broker of Reecer Properties.

“I very much believe in a quality model versus quantity,” said Reecer. “It was an experiment for a while. My [former] business partner was from the old traditional model—he wanted to bring in anyone who wanted to be an agent for us, whereas I was trying to build a team. It was very obvious which model worked best for our business philosophy and our market.”

Nate Martinez, co-owner of RE/MAX Professionals, has been on board with teams for 30 years—and, in fact, still oversees a sales team today. All that time at the helm, however, hasn’t been without missteps.

“When a team grows big, one thing that also grows very fast is ego—and ego means they’re going to leave,” said Martinez, who once lost four teams in six months. “You need to get to know your team leaders very well, and be transparent.”

Banishing the Frankenstein effect—when the monster’s got one foot out the door—comes down to organization, the panel shared.

“The biggest risk in a team structure is blurring the line between independent contractor and employee,” Cunningham said. “We make it a requirement of our leadership that if you’re going to hire an assistant or a buyer’s agent, you have to go through a training process. There’s too much risk for us at the brokerage level. You have to have a standard.”

“We had to address the issue of what these people really are in terms of their legal status,” said Hunt. “[Generally] if they’re unlicensed and functioning in our facilities, they’re going to be an employee. If they’re required to show up for work, they’re an employee. They’re on our payroll, and then we bill back the team leader 100 percent of the costs involved with that employee. Some people try to build hybrids—’Can I split with someone else?’—it gets tricky. We couldn’t have chickeducks—we had to have chickens and ducks clearly defined.”

“The broker should be giving the training and making sure that they’re getting that information,” Martinez said. “Once they start getting it from somewhere else, it’s real easy for them to move on.”

The intangibles are significant, too.

“Don’t underestimate culture—culture is the thing that keeps people, not just compensation,” said Cunningham. “They want to be around other people, and culture is the glue that keeps them together.”

“Our company is two-thirds millennials that are buying homes because they’re making such a good living,” Reecer said. “We couldn’t have hired them if we couldn’t give them a job that was more stable. They had to go on a 100 percent commission. There’s no way I would have these talented millennials that I have [otherwise]. We have to shoulder more of the risk, but the benefits are that you have more control and more accountability.”

“No.1 is being willing to listen to them, and not descend upon them a bunch of edicts,” Hunt said. “Second was to be responsive to what they had to say; in other words, instead of waiting for them with their list of demands and questions and how much more money they needed from me, go out and listen to what they have to say. That is the only way, I think, we can bring value to them.

“The key thing is not to get over-bureaucratized—to be responsive, to show that the organization is there to serve them.”

Stay tuned to RISMedia for continuing coverage of this year’s CEO Exchange sessions:

]]>http://rismedia.com/2017/09/25/avoid-chickeducks-team-leaders-talk-lessons-learned/feed/0http://rismedia.com/2017/09/25/avoid-chickeducks-team-leaders-talk-lessons-learned/Big Data, Big Opportunities: How Predictive Analytics Is Changing the Business of Real Estatehttp://feedproxy.google.com/~r/Rismedia/~3/imnG21kl6dI/
http://rismedia.com/2017/09/24/big-data-big-opportunties-how-predictive-analytics-changing-real-estate/#respondSun, 24 Sep 2017 17:08:07 +0000http://rismedia.com/?p=134771“This year the human race is producing more data than the previous 5,000 years combined. Data is so powerful that in the future, nation states will fight over it for power.” This thought-provoking statistic set the stage for a much-anticipated panel discussion at RISMedia’s 2017 Real Estate CEO Exchange in New York on how brokers […]

]]>“This year the human race is producing more data than the previous 5,000 years combined. Data is so powerful that in the future, nation states will fight over it for power.”

This thought-provoking statistic set the stage for a much-anticipated panel discussion at RISMedia’s 2017 Real Estate CEO Exchange in New York on how brokers are leveraging the application of predictive analytics and big data in their businesses to better serve consumers’ real estate needs.

Panel co-moderator Dave Garland, partner, Second Century Ventures and director of Strategic Investments for the National Association of REALTORS®

The opening remarks, presented by panel moderator Dave Garland, partner, Second Century Ventures and director of Strategic Investments for the National Association of REALTORS®, led the way for an engaging discussion with several industry leaders on the forefront of using predictive analytics and big data in real estate to change the way their business is being conducted now and into the future.

So what is predictive analytics, and why is it so important to the real estate industry? Simply put, “Predictive analytics is analyzing extracted data, using old data to predict the future,” Garland explained. “The big difference now is we have new data points that we can apply to our industry. We’re moving from the idea of hindsight to insight to foresight.”

The idea of using data in real estate isn’t new—think tax records, comps, valuations, or even local school, business and crime statistics. But with consumers demanding more and more information, and more data being available on consumer behavior than ever before, the use of predictive analytics—being able to accurately show buyers and sellers what their home will be worth in the future, backed up by data science—is the game-changer.

“‘Big data’ sounds like it’s really far out there, but earlier today I had a meeting downtown and on my phone, it said it’s going to take me 28 minutes to get to the next place I was going, and here’s an Uber so you can get there,” said Jeremy Sicklick, co-founder and CEO of HouseCanary. “The fact that it knew where I was, where my next meeting was and what the traffic was, and linked to an Uber to get me there—that is predictive analytics. So what does that look like in real estate over time?”

San Francisco-based HouseCanary is a real estate analytics company using data science to accurately value and forecast over 18,000 U.S. zip codes, 3 million blocks and 100 million properties.

Sicklick said one of the key opportunities predictive analytics provides in real estate is having the ability to know the property value of a home, and knowing where the value is going to go, to help consumers make better home-buying and -selling decisions. HouseCanary’s home value reports also allow users to add or remove properties or property details to instantly adjust a home’s comparable value, for example, or add a bathroom or remodel the kitchen and see how that affects the home’s value.

Arming the agent with that kind of statistic-based data science is key in working with today’s real estate consumers, he said.

“When is the right time to sell my home?” Sicklick said. “We said, ‘Let’s look at the data and see what’s really happening here.’ We now have enough information to help them make those decisions. Should I improve my home, sell my home or refinance? Being able to quantify and visualize it is where big data is going. Being able to show people and arm people with the ‘why’ it’s occurring and explain it to someone who is trying to make a decision—and putting brokers and agents at the center of those decisions to help [buyers and sellers] see their options—that’s the opportunity.”

Mark Choey, co-founder and CTO of the innovative boutique firm Climb Real Estate in San Francisco, emphasized the importance to brokerages of collecting data on buyers and sellers, noting the many tools available now to help the effort. “I wouldn’t recommend hiring a data scientist,” he said. “There are a lot of tools out there to help you get started.”

One of those that he uses is the Gmail extension Crystal, which uses personality detection technology to predict behavior and help businesses communicate with their clients in a more customized way, based on their personalities. Their tools use the DISC assessment, which uses four primary personality types to determine behavior: dominant, influential, steady, and calculating.

“I used the system before sending an email to someone I didn’t know, and it showed that the person likes their time respected and speaks in short, concise statements and bold language,” he said. “I wrote my email like that and got a very positive response. That’s one example of a great tool you can use to increase sales conversion.”

He also noted, “The No. 1 question people ask is, ‘Should I buy now?’ or ‘Should I sell now?’ so arming agents with data and historical context is important. When we get leads, the No. 1 thing an agent asks is, ‘Who is this lead?’ These types of new tools out there can help figure out who these people are.”

With technology innovation at his company’s core, Choey said Climb also utilizes social media data to better understand clients, and is constantly testing different tech platforms to achieve higher conversions.

“Most everyone here represents a brokerage that has been using lists for a long time,” he said. “Now we have much easier automation, more refined information, combined with good valuations. We can see if offers are coming in above or below where they should be. We can inform [buyers] and say take it and run or hold off for a better offer. At any one time we’re testing out 10-15 different technologies for widgets, apps, CRMs, landing pages, different listing sources. We look at lists from CoreLogic and constantly benchmark it against our own data. Our goal is to constantly improve sales conversions and we work on it all the time.”

John Murray, managing broker and president of Rockford, Ill.-based Key Realty, echoed Choey’s support for brokerages utilizing data tools available, rather than hiring a data scientist.

“One of the core competencies of our brokerage is to help improve conversion to do more sales,” Murray said. “We have leads coming out of our eyeballs, but what do we do with them? Companies providing predictive analytics are emerging and some are better than others. If you don’t have the expertise, you can work with these companies. Some bigger shops are hiring data scientists, but the majority of brokerages should focus on how to use the data and work with these companies to improve their data—then everyone wins.”

He added, “Data is great, but it’s all about how you use that data to find out what’s important to your clients.”

Scott MacDonald, broker/owner and president of RE/MAX Gateway in Chantilly, Va., agreed, explaining the use of data in real estate, like social media data, can be effective, but only if it’s used in the right ways.

“We look at where buyers come from; we look at their profiles and know where to target our marketing,” MacDonald said. “But it’s not only knowing what to look for, but how do we use it effectively?”

MacDonald said it’s all about giving agents the best tools to use, especially given the competitive complexity of the industry today. “You have the discounters, the disruptors and the DIYers,” he said. “The more you can arm your agents with information about what happened in the past and what’s coming in the future, the better able they will be to serve their clients.”

In an industry where valuations have been called into question, Murray also commented that while the accuracy of data is paramount, so is the industry’s ability to interpret it for real estate consumers.

“It’s the utilization and interpretation of the information that we can all do in our businesses to restore some credibility to the industry—we’ve lost some of that,” Murray said. “Data is readily available and we have to be better at interpreting what it means. If we stick to being brokers and focus on customer service and restore our credibility with knowledge, it will help us recapture some of the credibility we’ve lost.”

Choey added, “There is a lot of talk about Zestimates, Redfin and realtor.com®. What we train our agents to do is take those three and bring them to a listing appointment as the basis for discussion. The challenge is consumers have all the data in the world and know everything you’re doing as an agent. Everything is out in the open. So we really try to advise agents to use the data, and help sellers and buyers analyze the data.”

Big Data Lightning Round Q&A

To close the session, Garland proposed a “lightning round” of big data questions to the panel.

What data is concealed today but will be revealed tomorrow?

Murray: Offer dataMacDonald: Instant offersChoey: Pre-MLS, off-market data—knowing when a seller is going to sell before they sign a listing agreementSicklick: Really understanding days on market

What is the most important dataset for a thriving brokerage of the future?

Choey: Our agents’ happinessMacDonald: Agent engagement. Their level of engagement is critical.Murray: Buyer-seller propensitySicklick: Understanding current and past customer equity. In knowing how much equity they have, you can help them figure out what to do next.

What is the most important buyer data?

MacDonald: It goes back to price.Murray: Buyers are looking for deals.Sicklick: Price of property today and price at highest and best use so they understand what they are buying and what the opportunity isChoey: Buyers want to know what the seller is going to accept.

What will be the most indispensable tool five years from now?

MacDonald: Tools that help agents communicate on a deeper level with clients about property condition. To know the value if they improve the kitchen by $50,000 or finish their basement. Tools that will help the buyer know more at a deeper level.Murray: Workflow and tasking software that allows agents to scale in a more automated fashion.Choey: Happiness customer score—what button can I push to make the customer happySicklick: Doing our job

Sicklick offered some closing thoughts to industry leaders about the importance, and the future, of big data, not only in real estate, but in so many aspects of our daily lives.

“I get to see it through the eyes of my kids every day and how they learn. If they have a question they look it up on their iPad. They’re learning in a different way. It’s at their fingertips to search; they teach themselves. We have the first generation of people coming of age who don’t remember AOL or Prodigy. They grew up with everything at their fingertips. The way they research, buy things, get a loan, engage with people, is all really different from even 10-20 years ago. They are just going to expect it.

“How do we bring that data and capability to the next generation? This is how they want to do business. It’s just a different world now. Data is the first part of that that enables people to streamline transactions in ways we haven’t seen yet.”

Stay tuned to RISMedia for continuing coverage of this year’s CEO Exchange sessions:

]]>Located in the Malaga region of Spain’s famed southern coast, Cilo Marbella Luxury Real Estate was created by two luxury real estate experts, Jason Higgs and Dr. Miguel Horvath. From beachfront apartments to villas in the hills of the Sierra Blanca, Cilo Marbella services a wide variety of international clientele through offices in Marbella, Spain and London. Here, Higgs, the firm’s director, shares insights about the market, the firm’s strategies and the opportunities and challenges that lie ahead.

When was the firm founded?Jason Higgs: We have been in business for seven years as Cilo Marbella, although I’ve been working in real estate in Marbella for 19 years. We operate within a 30-minute radius of Marbella.

What makes your company different? How do you position yourselves in the market?JH: We like to think we know the market well from our almost 20 years of experience. We prefer to work with small-volume/high-value clients for sales and rentals.

Please describe current market conditions.JH: The market is still fairly quiet at prices above 500,000 euros (approximately $587,000). The worldwide financial crisis hit Spain especially hard. Green shoots are certainly appearing at the lower price levels, and very small levels of growth are starting to show in the middle market, as well. Some properties have been on the market for years. This tends to happen when the owner has not faced up to new market realities.

How have home prices fluctuated in recent years?JH: Prices have stabilized in the past 2-3 years; confidence is slowly returning.

Tell us about the types of properties in your market and which are most popular.JH: Marbella remains (together with Cannes, St. Tropez, and the entire French Riviera) the leading luxury Mediterranean resort. Accordingly, we have an array of outstanding properties. These include beachfront mansions for 50 million euros, beachfront apartments for 3 million euros, gated community mansions for 5-15 million euros, etc. Apartments under 500,000 euros are most popular at the moment.

How do you market your listings?JH: Mostly online through portals. Occasionally, through print as well.

What is the status of new construction in your area?JH: It is gradually picking up. This is a good barometer that activity is returning to the market.

What types of buyers do you work with?JH: Our buyers are almost exclusively international. The Russian market used to be strong, but has dipped due to lower oil prices and imposition of sanctions. The Middle East remains of interest, but again, not as strong as before. Scandinavians are a strong segment, but they tend to purchase at the lower end, rather than the higher end.

What are the needs and expectations of homebuyers and sellers in your market, and how do you serve those needs?JH: Buyers and sellers alike can be unrealistic in their expectations. Realistic sellers are glad to get offers in the same ballpark as the asking price. Buyers sometimes think they can get “something for nothing.” As ever, it is a case of managing expectations.

What are the firm’s biggest challenges? What role do geopolitics play in your success?JH: We seek economic and political stability for the European Union (EU). Anything that undermines this is damaging to the real estate market. For example, Brexit was not good for business. While we are not directly impacted by U.S. politics and economics, if the U.S. follows a more isolationist approach, that will undoubtedly be damaging to the whole European economy.

What are some of your most successful strategies for promoting and expanding your business?JH: Collaborating with Leading Real Estate Companies of the World® and attending small, private shows. Being part of the network affords us credibility. We also have a strong rental department that allows us to establish relationships with potential future purchasers.

What are your plans for future growth?JH: Nothing spectacular given current market conditions. We hope to be in a good position to benefit when the tide turns, which it is gradually starting to do.

]]>http://rismedia.com/2017/09/24/cilo-marbella-luxury-living-costa-del-sol/feed/0http://rismedia.com/2017/09/24/cilo-marbella-luxury-living-costa-del-sol/Entry-Level Housing Recovery Unsteadyhttp://feedproxy.google.com/~r/Rismedia/~3/yBTMC5V6hTM/
http://rismedia.com/2017/09/24/entry-level-housing-recovery-unsteady/#respondSun, 24 Sep 2017 17:06:02 +0000http://rismedia.com/?p=134726Entry-level homes came in last in the recession, hit hard by sinking values—and now, they are the last to recover, according to the August Zillow® Real Estate Market Reports. Starter homes in 24 of the 35 largest metropolitan areas, or roughly 69 percent, are struggling to regain value, even with the national median value up […]

]]>Entry-level homes came in last in the recession, hit hard by sinking values—and now, they are the last to recover, according to the August Zillow® Real Estate Market Reports. Starter homes in 24 of the 35 largest metropolitan areas, or roughly 69 percent, are struggling to regain value, even with the national median value up 6.9 percent year-over-year.

“The housing market as a whole is moving at a steady clip, with high demand and low inventory combining to maintain strong home value appreciation,” says Dr. Svenja Gudell, chief economist at Zillow. “Most new construction has been at the higher end of the market, so demand for the limited supply of entry-level homes is pushing up their values—but these homes also lost more value when the bubble burst. Many of these homeowners are still waiting to see their homes come back to where they were about 10 years ago. Even as headline numbers show an overall recovery, there are still thousands of Americans struggling to bounce back from the housing bust.”

Over 50 percent of homes nationwide, however, have recovered—and then some. In August, the national median value in the Zillow Home Value Index (ZHVI) was $201,900.

There are now 12.6 percent fewer homes for sale compared to one year ago, the Reports show. The national median rent in the Zillow Rent Index (ZRI), meanwhile, has posted an annual gain of 1.9 percent, with the median rent totaling $1,430.

]]>http://rismedia.com/2017/09/24/entry-level-housing-recovery-unsteady/feed/0http://rismedia.com/2017/09/24/entry-level-housing-recovery-unsteady/Riding the Wave in South Carolinahttp://feedproxy.google.com/~r/Rismedia/~3/kqto2q69Fd0/
http://rismedia.com/2017/09/24/riding-wave-south-carolina/#respondSun, 24 Sep 2017 17:04:34 +0000http://rismedia.com/?p=134722A rising tide lifts all boats, as the saying goes, and for ERA Wilder Realty, this past year has been about cresting an incredible wave of momentum. According to Eddie Wilder, president and CEO of the Columbia, S.C.-based firm he founded in 1995, he’s always aspired to be better. “You’re only as good as the […]

]]>A rising tide lifts all boats, as the saying goes, and for ERA Wilder Realty, this past year has been about cresting an incredible wave of momentum.

According to Eddie Wilder, president and CEO of the Columbia, S.C.-based firm he founded in 1995, he’s always aspired to be better.

“You’re only as good as the people around you,” he remarks. And to that end, he’s assembled both a dynamic leadership team and an energized roster of sales professionals.

When he affiliated with ERA Real Estate in 2001, it was because the brand’s culture fit so well with his.

“We’re always looking for the best tools, and we try to be an early adopter. We’re not afraid to take a risk in order to grow,” says Wilder. “ERA Real Estate’s reputation as an innovator fits with our winning mindset.”

This past year, that winning mindset manifested itself in a number of industry accolades recognizing performance, service excellence and commitment to community. As a top 10 company in the ERA® system and a CARTUS Cup finalist for outstanding relocation service, ERA Wilder Realty not only ranked high in production, but the firm also produced the brand’s national Rookie of the Year, was honored with ERA’s Circle of Light Award for Community Leadership, and was recognized as one of the top three fundraisers for ERA’s signature charity, the Muscular Dystrophy Association.

Commitment to community is an integral part of the company’s culture, complementing a set of core values recently formalized across the entire company of 10 offices and 260 agents.

“Our core values are to approach our profession and each other with a positive attitude; to conduct ourselves in a professional manner as honesty and integrity guide our decisions; to respect each other’s time, differences, perspectives, feelings and opinions; and to embody the spirit of teamwork,” says Wilder.

The company’s core values have also supported recruitment efforts.

“It’s more than a code,” says Wilder. “It’s a lifestyle that defines our company.”

While success may be a word that has defined ERA Wilder Realty over the years, Wilder wanted more. To that end, he and his leadership team recently implemented a new approach to running the company based on Gino Wickman’s book “Traction: Get a Grip on Your Business.” Wickman’s Entrepreneurial Operating System suggests simple ways to realign a company to provide the leadership team with more focus, more growth, and more enjoyment.

The process involved taking a hard look at the team’s strengths and weaknesses and putting the right people in the right roles. That meant getting Wilder out of the management weeds and allowing him to focus on being the company visionary, while delegating operator responsibilities to others. The result has been increased communication and efficiency—a plus for the entire company.

It’s a process that was shared as a best practice during the ERA Young Leaders Network summer retreat, which ERA Wilder Realty hosted in early August. During this three-day event, more than 40 ERA colleagues who are currently in a leadership role—or being groomed for one—immerse themselves in a host company’s business, learning about best practices they can implement in their own business.

“As an example of ERA Real Estate’s core values of collaboration and knowledge-sharing, this event truly embodies the brand’s commitment to being best-in-class and creating connections that can make that happen,” says Wilder.